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Q: Jobs in Insurance ( Answered,   0 Comments )
Question  
Subject: Jobs in Insurance
Category: Business and Money
Asked by: structuredguy01-ga
List Price: $20.00
Posted: 01 Jun 2003 19:50 PDT
Expires: 01 Jul 2003 19:50 PDT
Question ID: 211788
What kinds of entry level jobs are available in the insurance
industry, and what does each job actually do? What kind of education
is necessary for each job?
Answer  
Subject: Re: Jobs in Insurance
Answered By: clouseau-ga on 01 Jun 2003 20:55 PDT
 
Hello structuredguy01,

Thank you for your question.

I found an excellent page on the insurance industry at
CollegeGrad.com:
http://www.collegegrad.com/industries/finan02.shtml

Here are some of the highlights that address your questions from this
page:

Industry Information

"Insurance Industry 

Significant Points: 

Office and administrative occupations usually require a high school
diploma, while employers prefer college graduates for sales,
managerial, and professional jobs.

Medical service and health insurance is the fastest growing sector of
the insurance industry.

While corporate downsizing, computerization, and changes in business
practices will limit job growth, numerous job openings are expected in
this large industry to replace those who leave and to accommodate the
insurance industry’s expansion into the broader financial services
field...

...The insurance industry consists mainly of insurance carriers, or
“insurers,” and Insurance Sales Agents. In general, insurance carriers
are large companies that provide insurance and assume the risks
covered by the policy. Insurance Sales Agents sell insurance policies
for the carriers and work either for themselves or directly as
employees of the insurer. While the majority of sales agents are
independent and are free to market policies of a variety of insurance
carriers, others may work exclusively for one insurance carrier,
selling only that carrier’s policies. Some carriers market without
agents, using the telephone, mail, and—increasingly—the Internet...

...Many workers in the insurance industry, especially those in
administrative support positions, work a 5-day, 40-hour week. Those in
executive and managerial occupations may often put in more than 40
hours. Many Insurance Sales Agents and claims adjusters and
investigators work irregular hours outside of office settings. Often,
sales agents and adjusters arrange their own hours, scheduling evening
and weekend appointments for the convenience of clients. This
accommodation may result in sales agents and claims adjusters working
50 to 60 hours per week...

...The insurance industry employed about 2.3 million wage and salary
workers in 2000. Insurance carriers provided 2 out of 3 jobs in the
insurance industry; Insurance Sales Agents and providers of other
insurance-related services accounted for 1 out of 3 jobs. In addition,
there were about 150,000 self-employed workers in 2000, most of whom
were Insurance Sales Agents.

Insurance carriers are mostly large employers, as shown in chart. Over
half of their employment is in establishments with 250 or more
employees, and 80 percent is in establishments with 50 or more
workers. Conversely, small establishments dominate the agents and
brokers segment of the industry, with nearly all employing fewer than
50 workers (see chart). Approximately 40 percent work in
establishments with fewer than 10 employees, and another 30 percent
work in establishments with 10 to 49 employees....

...Almost 1 in 2 insurance workers are in office and administrative
support jobs found in every industry, including jobs such as
secretaries, typists, word processors, bookkeepers, and other clerical
workers (table 1). Many office and administrative support positions in
the insurance industry, however, require skills and knowledge unique
to the industry.

Customer Service Representatives , for example, process insurance
policy applications, changes, and cancellations. They review
applications for completeness, compile data on policy changes, and
verify the accuracy of insurance company records. They may also
process claims and sell new policies to existing clients. These
workers are taking on increased responsibilities in insurance offices,
such as handling most of the continuing contact with clients. An
increasing number of Customer Service Representatives work in call
centers that are open 24 hours a day, 7 days a week, answering
clients’ questions, updating policy information, and providing
potential clients with information regarding types of policies issued.

About 3 in 10 insurance workers have a job in a management and
business and financial operations occupation. Marketing and sales
managers constitute the majority of managers in carriers’ local sales
offices and in the Insurance Sales Agents segment. They sell insurance
products, work with clients, and supervise staff. Other managers who
work in their companies' home offices are in charge of departments
such as actuarial calculations, policy issuance, accounting, and
investments.

Claims adjusters, examiners, and investigators decide whether claims
are covered by the customer’s policy, confirm payment, and, when
necessary, investigate the circumstances surrounding a claim. Claims
adjusters work for property and liability insurance carriers or for
independent adjusting firms. They plan and schedule the work required
to process claims, which includes interviewing the claimant and
witnesses, consulting police and hospital records, and inspecting
property damage to determine the extent of the insurance company’s
liability.

In life and health insurance carriers, the counterpart of the claims
adjuster is the claims examiner. Examiners in the health insurance
field review health-related claims to see if costs are reasonable
based on the diagnosis. Examiners check claim applications for
completeness and accuracy, interview medical specialists, and consult
policy files to verify information on a claim. Claims examiners in the
life insurance field review causes of death, and also may review new
applications for life insurance to make sure applicants have no
serious illnesses that would prevent them from qualifying for
insurance. Claims examiners in property and casualty insurance review
claims to ensure that payments and settlements have been made in
accordance with company practices and procedures. They ensure that
adjusters have followed proper methods when investigating claims.
Examiners may consult with Lawyers on claims requiring legal action.

Insurance investigators handle claims in which companies suspect there
might be fraudulent or criminal activity, such as arson cases, false
workers’ disability claims, staged accidents, or unnecessary medical
treatments. Investigators usually perform database searches on
suspects to determine whether they have a history of attempted
insurance fraud. Then, investigators may visit claimants and witnesses
to obtain a recorded statement, take photographs, inspect facilities,
and conduct surveillance on suspects. Investigators often consult with
legal counsel and are expert witnesses in court cases as well.

Auto damage appraisers usually are hired by insurance companies and
independent adjusting firms to inspect auto damage after an accident
and provide unbiased repair cost estimates. Claims adjusters and auto
damage appraisers can work for insurance companies, or they can be
independent or public adjusters. Insurance companies hire independent
adjusters to represent their interests while assisting the insured,
whereas public adjusters are hired to represent the insured’s
interests against insurance carriers.

Loss control representatives assess various risks faced by insurance
companies. They inspect insurance applicants and business operations
and analyze historical data regarding workplace injuries, automobile
accidents, natural hazards, and conditions that may result in
catastrophic physical and financial loss. They might then recommend,
for example, that a factory add safety equipment, that a house be
built to withstand environmental catastrophes, or that incentives be
implemented to encourage automobile owners to install air bags in
their cars. Because these standards can greatly reduce the probability
of loss, loss control representatives are increasingly important to
both insurance companies and the insured.

Another important management and business and financial occupation in
insurance is that of underwriter. These professionals evaluate
insurance applications to determine the risk involved in issuing a
policy. They decide whether to accept or reject an application and
determine the appropriate premium rate for each policy.

About 13 percent of wage and salary employees are sales staff, who
sell policies to individuals and businesses. Insurance Sales Agents
may work as exclusive agents, or captive agents, selling for one
company or as independent agents selling for several companies.
Through regular contact with clients, agents are able to update
coverage, assist with claims, ensure customer satisfaction, and obtain
referrals. Insurance Sales Agents may sell many types of insurance,
including life, annuities, property-casualty, health, or disability.
Also, many Insurance Sales Agents are involved in “cross-selling” or
“total account development,” which means that, besides insurance, they
have become licensed to sell mutual funds, annuities, and other
securities. These agents usually find their own customers and ensure
that policies they sell meet the specific needs of their
policyholders...

As you can see, this site provides an immense amount of information on
the positons and functions in the insurance industry.

They continue:


...A few jobs in the insurance industry, especially in office and
administrative support occupations, require no more than a high school
diploma. However, for most jobs, including sales, managerial, and
professional jobs, employers prefer to hire workers with a college
education. When specialized training is required, it usually is
obtained on the job or through independent study during work or
after-work hours.

Graduation from high school or business school is adequate preparation
for most beginning office and administrative support jobs. Courses in
word processing and business math are assets, and the ability to
operate computers is essential. These and other special skills also
help beginners advance to higher paying positions. On-the-job training
usually is provided for clerical jobs such as Customer Service
Representatives. Because Customer Service Representatives in call
centers must be knowledgeable about insurance products in order to
provide advice to clients, more States are requiring Customer Service
Representatives to become licensed like agents are...

...Most companies prefer to hire college graduates for claims adjuster
and examiner positions. No specific college major is required,
although most workers in these positions have a business, accounting,
engineering, legal, or medical background. Some States require
independent, or public, adjusters to be licensed. Most adjusters also
find it beneficial to earn one or more professional designations, such
as the Associate in Claims (AIC); Registered Professional Adjuster
(RPA); Certified Professional Public Adjuster (CPPA) or Senior
Professional Public Adjuster (SPPA); and the Associate, Life and
Health Claims (ALHC) or the Fellow, Life and Health Claims (FLHC).
Many State licenses and professional designations require continuing
education for renewal. Continuing education is important because
adjusters and examiners must be knowledgeable about changes in the
laws, recent court decisions, and new medical procedures...

...Although some employers hire high school graduates with potential
or proven sales ability for entry-level sales positions, most prefer
to hire college graduates. All Insurance Sales Agents must obtain a
license in the States in which they plan to sell insurance. In most
States, licenses are issued only to applicants who complete specified
courses and pass written examinations covering insurance fundamentals
and State insurance laws. New agents receive training from their
employer either at work or at the insurance company’s home office.
Sometimes, entry-level employees attend company-sponsored classes to
prepare for examinations. Others study on their own and, as on-the-job
training, accompany experienced agents when they meet with prospective
clients. After obtaining a license, agents must earn continuing
education credits throughout their careers in order to remain a
licensed insurance sales agent..."



This site is a wealth of information and will answer most any question
you may have about positions in the insurance industry, their
requirements and potential earnings.

You will wish to follow some of the links for more information on
specific jobs such as:

Insurance Agent
http://www.collegegrad.com/careers/marke04.shtml

"...Significant Points: 

Despite slower than average growth, job opportunities should be good
for people with the right skills.

Employers prefer to hire college graduates and persons with proven
sales ability or success in other occupations.

In addition to insurance policies, agents are beginning to sell more
financial products such as mutual funds, retirement funds, and
securities..."


Customer Service Representative
http://www.collegegrad.com/careers/admin16.shtml

"Customer service representatives interact with customers to provide
information in response to inquires about products and services. They
also handle and resolve customer’s complaints. Some customer service
representatives assist individuals interested in opening accounts for
various utilities such as electricity and gas, or for communication
services such as cable television and telephone. In many cases, they
gather information by phone or in person. They receive orders for
services to be installed, turned on, turned off, or changed. They may
look into and resolve complaints about billings and service provided
by phone, cable television, and utility companies. Customer service
representatives also may explain how to use equipment and solve any
equipment problems. Others explain to users how to navigate an
Internet site..."

Claims Adjusters, Appraisers, Examiners, and Investigators  
http://www.collegegrad.com/careers/manag29.shtml

"...Significant Points: 

Adjusters and examiners investigate claims, negotiate settlements, and
authorize payments, while investigators deal with claims in which
fraud or criminal activity is suspected.
 
Most employers prefer to hire college graduates. 

The greatest demand for adjusters will be in property and casualty,
and health insurance; competition will remain keen for jobs as
investigators because this occupation attracts many qualified
people..."


Actuaries:
http://www.collegegrad.com/careers/proft42.shtml

"...Significant Points: 

A strong background in mathematics is essential. 

About 7 out of 10 actuaries are employed in the insurance industry. 

This small occupation generates relatively few job openings; the
fastest employment growth is expected in the computer and data
processing services, health services, and management and actuarial
consulting industries..."

Insurance Underwriters
http://www.collegegrad.com/careers/manag21.shtml
 
"..Significant Points: 

Little or no change in employment is projected as insurance companies
increasingly use computer underwriting software that automatically
analyzes and rates insurance applications.
 
Most large insurance companies prefer college graduates who have a
degree in business administration or finance with courses in
accounting; however, a bachelor’s degree in any field—plus courses in
business law and accounting—may be sufficient to qualify..."

There are a number of other sites and resources that will supply you
with additional career information for the insurance industry:

For information about insurance sales careers and training, contact: 

The American Institute for CPCU/Insurance Institute of America, 720
South Providence Rd., Malvern, PA 19355. Internet:
http://www.aicpcu.org

Independent Insurance Agents of America, 127 South Peyton St.,
Alexandria, VA 22314. Internet: http://www.iiaa.org

The above site offers a page on Young Agents:
http://www.iiaa.org/eprise/main/CB_Website/Affiliated/NationalAssociation/IIAA/09_YoungAgents/NAV_YAYoungAgents?ContentPreference=NA&ActiveState=0&ContentLevel1=YNGAGNT&ActiveTab=NA


Insurance Vocational Education Student Training (InVEST), 127 South
Peyton St., Alexandria, VA 22314. Internet:
http://www.investprogram.org

This site has a page on Insurance as a Career:
http://www.investprogram.org/career.htm


For information on insurance education and training, contact: 

The American College, 270 Bryn Mawr Ave., Bryn Mawr, PA 19010.
Internet: http://www.amercoll.edu

The National Alliance for Insurance Education and Research, P.O. Box
27027, Austin, TX 78755.


ISO talks about careers and requirements for Insurance Lines Analysts:
http://www.iso.com/work_at_iso/ins_lines.html

"Is the Insurance Lines Analyst field right for you?

If you're a college graduate with both a love and talent for writing
and research, ISO's Insurance Lines Training Program may be right for
you. Each year, ISO recruits highly motivated individuals with degrees
in fields such as English, history, political science, and others.
Trainees who successfully complete our program will work as analysts
in one of our many lines of insurance, such as auto, homeowners, or
commercial liability insurance...

...Who we recruit

ISO looks for bright recent grads or individuals with one or two years
of work experience with excellent analytical, writing, and
problem-solving skills. Since trainees participate in ISO's
comprehensive Insurance Lines Training Program, they don't need
previous experience in the insurance industry. Candidates should have
a bachelor's degree in a liberal arts field and must have a cumulative
grade-point average of 3.0 or above. You also should have solid
computer skills and the ability to deliver effective presentations..."


And the School of Advanced International Studies discusses the
insurance industry on this page:
http://www.sais-jhu.edu/careerservices/Students&Alumni/profiles/Insurance.html

"CAREER OPPORTUNITIES IN INSURANCE AND RISK MANAGEMENT

Description of the Field

Insurance and risk management help to safeguard against financial
losses associated with uncertainty and risk.  People and businesses
pay premiums to an insurance company to take on risks associated with
health, property, and liability.  In turn, the insurance company will
pay for certain financial losses suffered.  Insurance companies and
risk managers help individuals, families and businesses to plan for
the future and to protect themselves against unexpected losses...

...Career Paths and Entry Salaries

Entry level insurance sales positions start at the low $30,000 level.
However, because sales agents often work on a commission basis,
earnings potential can range between $30,000 - $53,000. An entry-level
risk manager may start at $35,000/year, but individuals with graduate
degrees or more experience can earn considerably more.  Entry level
account executive positions with risk management firms can start
between $50,000 - $80,000, depending on qualifications.  Starting
salaries for actuaries in 1995 averaged about $36,000 - $40,000 for
those with graduate degrees.  Underwriters with starting salaries
earned between $24,000 - $41,000/year.

There are many different types of insurance because almost every
aspect of our lives involves risk.  Therefore an insurance career can
include dealing with a number of different kinds of insurance or a
person can specialize in a particular type of organization within the
insurance industry: insurance companies, risk management firms,
reinsurers, intermediaries, or loss adjusters.

Each insurance company has positions which can be generally divided
into the following sectors: claims, underwriting, sales (agents and
brokers), actuarial, finance, and risk management. In the sales,
finance and actuarial sectors, professional employees are normally
required pass a set of professional examinations prior to or in the
first year or two of work (licensing, CPA designation, or actuarial
exams).  These exams are often the key to salary and professional
advancement in these fields...

...Qualifications Necessary to Enter the Field 

A graduate degree is usually required for executive or managerial
positions and is important for salary and career advancement. Course
work in mathematics, finance, business and economics is recommended
for work in the insurance field.  For risk management and captive
insurance, international business and finance as well as regional
expertise in politics and economics are helpful.  International law
courses may also be a plus.  Excellent oral and written communication
skills are necessary, as are research, analysis and decision-making
abilities..."

And another article at California Job Journal:
http://www.jobjournal.com/article_full_text.asp?artid=332

"The Insurance Industry: Security, Strength, and Solid Careers

by Julia Hollister

Since America's early settlers first bought policies for their covered
wagons heading west, the insurance industry has been on a steady
course of growth, and now provides jobs and opportunities for
thousands of Californians.

"Insurance is the fourth largest source of general fund revenue in the
state," reports Pete Moraga, spokesman for the Insurance Information
Network of California, in Los Angeles. Supported by insurance
companies, the IINC is a nonprofit organization that monitors the
pulse of the industry...

...Getting Started

Ann Oliver, director of membership services for Insurance Brokers and
Agents of the West, in Oakland, has tips on getting in the door. "If
someone really wanted to get into the industry, they could start by
working in a small, independently owned office and learn through a
mentoring program," she suggests. "There are many entry-level
positions and if you want to sell insurance, any business-type
background such as marketing and accounting is a plus." She points to
a broad range of opportunities and jobs posted on the IBAW website at
www.ibawest.com.

"Best of all insurance can bring a good living if someone is willing
to work hard," Oliver states. "But, you have to plant the seeds to
reap benefits."

This is another article worth reading.

You can also visit TrueCareers and click on SallieMae for a number of
current entry level insurance opportunities:
http://www.truecareers.com/jobseekerx/SearchJobs.asp?Jobs_CompanyProfileID=383&noposteddate=true
 
The above sites and links should provide you with a very good
background on this industry and potential employment opportunities.


Search Strategy:

"insurance industry" +"entry level" +job OR employment

I trust my research has answered your question and provided you with
valuable resources for further reading. If a link above should fail to
work or anything require further explanation or research, please do
post a Request for Clarification prior to rating the answer and
closing the question and I will be pleased to assist further.

Regards,

-=clouseau=-
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